Autumn Budget 2017

Inheritance Tax (IHT)

There was no mention of IHT in the Budget, however a research paper was issued earlier in the year with regard to the use and motivation of reliefs available for agricultural or business assets.

The reliefs currently available are very valuable as they can give up to 100% relief from IHT.  The purpose of the reliefs is to enable family businesses to be carried on by the future generations without the assets having to be sold to pay the IHT.

Whilst there are no specific comments on the future of agricultural or business reliefs, the issuing of the paper suggests that they may be under review, with a view to either reducing the rates of relief or tightening up on the assets which may qualify for the relief.

There has been recent speculation that the 100% business relief available in respect of AIM shares (Alternative Investment Market) may be withdrawn as the shares  are not necessarily “family business” assets but used more as a tax planning mechanism for passing investments to future generations free of IHT.

We anticipate that consultation documents may emerge in the coming months, so watch this space!

The Inheritance Tax Nil Rate Band will continue at £325,000 per person from 6 April 2018, but the amount of the Residence Nil Rate Band will increase from £100,000 to £125,000 per person.

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Oct 23

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Personal service.  After all the years of dealing with Dodd & Co and being a small business, Alan is still always prepared to deal with any enquiries we have himself, where others might pass you on to someone lower down the ranks.
-- John Johnson